We need a place to stay...
We have a growing portfolio of Multifamily properties in Florida and the Holiday Inn in Bay Pines, Fl outside St. Petersburg is offering me a discounted rate as a regular customer.
That’s a problem. I’m in search of a smaller residential property in the Madeira Beach area that we can use as a 2nd residence and STR income property!
We recently completed our Downtown Albany Office space to Apartment conversion, quickly leased the newly built apartments and now preparing for a refinance into a long term, commercial loan product.
This is my 5 point plan:
1. Create a Pro forma value for our properties newly developed use
2. Talk to up to 5 lenders to see their institutions appetite for our business
3. Select 3 lenders that are willing to compete for my business
4. Formally seek loan commitment from the banks
5. Negotiate with each lender focusing on a competitive loan package that aligns with your plan for the property.
For example, we may choose to sell the property so we will be insisting on excluding pre-payment penalties.
Each term in a loan package is negotiable!!! Don’t pay upfront fees if they can be avoided.
The goal is finding the lender that is motivated to offer a highly competitive product that aligns with your borrowing goals for the property.
Regards,
Bill
REAL ESTATE LINGO:
STR- Short-term rental
Pro forma- Operating statement based on a conversion of use and/or projections
Commitment- The lender expressing in writing their interest in lending